TIDMTSTL
RNS Number : 1925Q
Tristel PLC
16 October 2023
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Tristel plc
("Tristel", the "Company" or the "Group")
Audited Preliminary Results
for the year ended 30 June 2023
Sales and adjusted PBT ahead of consensus forecasts
Strongest ever outlook in Tristel's 30 year history driven by
key North American regulatory approvals
Tristel plc (AIM: TSTL), the manufacturer of infection
prevention products for hospitals, announces its audited
preliminary results for the year ended 30 June 2023, showing strong
revenue growth from continuing products well ahead of internal
growth targets. The business continues to be profitable with
high gross margins and remains both debt free and cash
generative.
The Company's core business is the sale to hospitals of its
proprietary chlorine dioxide chemistry for the decontamination of
medical devices under the Tristel brand (86% of total sales), and
for the sporicidal disinfection of environmental surfaces under the
Cache brand (9% of total sales).
Financial Highlights
-- Turnover of GBP36.0m (2022: GBP31.1m), a 16% increase. 22%
growth to GBP36.0m from continuing products (2022: GBP29.6m)
-- Overseas sales continue to grow, up 17% to GBP23.5m (2022:
GBP20.1m), representing 65% of total sales (2022: 65%)
-- Gross margin increased to 81% (2022: 80%)
-- Adjusted EBITDA* margin of 25% (2022: 24%)
-- Adjusted pre-tax profit* of GBP6.2m (2022: GBP4.5m) slightly above consensus forecasts
-- Reported pre-tax profit of GBP5.1m (2022: GBP1.6m)
-- Adjusted EPS* up 39% to 10.67p (2022: 7.68p). Basic EPS of 9.44p (2022: 2.09p)
-- Dividend per share for the full year up 10% to 10.50p (2022: 9.55p)
-- Cash of GBP9.5m (2022: GBP8.9m), with continued strong
operating cashflow of GBP8.4m in the year (2022: GBP5.6m)
* before share-based payments, and impairment of intangibles in
FY 2022
Operational Highlights
-- US FDA Class II device approval for Tristel ULT as a
high-level disinfectant for ultrasound probes, with nationwide
launch underway
-- Regulatory approval in Canada for Tristel OPH as a high-level
disinfectant for ophthalmic devices with first sales recorded in Q1
FY 2024
-- Majority of UK and European regulatory approvals for Cache
product range expected to be secured in FY 2024
-- Continued investment in exciting pipeline of new product innovations
Paul Swinney, Chief Executive of Tristel plc, said: " The
enormous achievement of the year has been the FDA approval, which
enables us to enter the largest healthcare market in the world. We
will also be able to leverage the significance of an FDA approval
in countries that look to the USA regulator for their own practice.
This includes Central and South America. We now have the
opportunity to establish a global footprint for our products and
technology.
We have commenced manufacture and have shipped product to our
first customers in the USA. The outlook for the Company is the
strongest it has been in its 30-year history."
CFO video & investor presentations
Please find a link to a video overview relating to the Company's
preliminary results from the Group's Chief Financial Officer, Liz
Dixon here -
https://stream.brrmedia.co.uk/broadcast/6529123cebb7e6c1a1dcb0da.
Paul Swinney, CEO, and Liz Dixon, CFO, will present the
Company's results via the Investor Meet Company platform today at
11:30 BST. The presentation will also be available for playback
after the event. Investors can sign up to Investor Meet Company for
free and add to meet Tristel plc via:
https://www.investormeetcompany.com/tristel-plc/register-investor
An in-person presentation will take place at 16:30 BST, which is
open to all existing and potential shareholders. T he Company will
welcome investors to 85 Gresham Street, London, EC2V 7NQ from
4.15pm for a 4.30pm start and will be followed by refreshments. If
you would like to attend, please contact Walbrook PR on 020 7933
8780 or email tristel@walbrookpr.com .
The results presentation is available on the Company's website:
https://tristelgroup.com/
For further information please contact:
Tristel plc https://tristelgroup.com/
Paul Swinney, Chief Executive via Walbrook PR
Officer
Liz Dixon, Chief Financial Officer
Walbrook PR Ltd Tel: +44 (0)20 7933 8780 or tristel@walbrookpr.com
Paul McManus / Lianne Applegarth Mob: +44 (0)7980 541 893 / +44 (0)7584
/ 391 303
Charlotte Edgar +44 (0)7884 664 686
Cavendish Tel: +44 (0)20 7220 0500
Geoff Nash/ Charlie Beeson (Corporate
Finance)
Sunila de Silva (ECM)
Chairman's Statement
GROUP STRATEGY
The Group continues to focus on the global hospital market,
using its proprietary chlorine dioxide chemistry for two
applications: the decontamination of medical devices under the
Tristel brand, and the disinfection of environmental surfaces under
the Cache brand.
During the year we achieved the milestone of securing De Novo
clearance for our hand-held high-level disinfectant, Tristel ULT,
from the United States Food and Drug Administration (FDA). The
agency has approved Tristel ULT as a Class II device for endocavity
ultrasound probes and skin surface transducers. This approval
complements an earlier approval that we received from the United
State Environmental Protection Agency (EPA) for our chemistry's use
in the same packaging format, but for general surfaces in the
ultrasound setting. In granting its approval the FDA has created a
new category of high-level disinfectant being a foam or gel. This
format implies application to the device by hand, which is the USP
of Tristel's high-level medical device disinfectants: they are
applied by hand rather than administered inside a machine.
Today, Tristel is the market leader in Europe, Middle East and
Asia-Pacific in manual high-level disinfection of heat sensitive
non-lumened diagnostic medical devices. During the current
financial year we will enter the North American market and our
ambition to become the global market leader can be further pursued.
We are delighted to announce that manufacturing has begun in the
USA and we have already shipped our first orders to customers.
During the year, 35% of our revenues were generated in the
United Kingdom and 65% in the rest of the world. Throughout the 40
countries in which we actively market our products, the number of
diagnostic procedures involving medical devices that can be
disinfected by a Tristel product increased to pre-pandemic levels.
During the year, Tristel medical device disinfectant revenue, which
is driven by the number of diagnostic procedures, increased to
GBP30.8m from GBP25.4m in the previous year, and GBP20.8m in FY19,
the year before COVID-19 disrupted hospital services worldwide.
Our second product range, Cache, made much slower progress
during the year. Revenue was GBP3.3m compared to GBP3.2m in the
previous year. Part of the new Cache range is still in the product
design and testing stage, and a further portion of the range is
waiting for regulatory approvals in key markets. In Europe, CE
marking is required for medical device disinfectants, and whilst
the Cache product range is intended for environmental surfaces,
many of the surfaces around the patient are considered medical
devices requiring CE marking as well as approval under the European
Biocidal Products Regulation. Post Brexit, the UK introduced UKCA
Marking Certification for medical devices, and we are waiting to
receive UKCA approval for the new Cache products.
These approvals have taken longer than originally anticipated
but we are confident that the majority will be secured in the
current financial year, giving us the opportunity to deliver
significant growth in sales of the Cache product range going
forward.
INVESTING IN GROWTH
The regulatory environment in which we are operating is becoming
ever more complicated and demanding and we must comply with
parallel (and sometimes competing) regulatory frameworks.
Compliance can only be achieved by building the best Quality
Assurance and Regulatory Affairs teams in a highly competitive
market for such skills and we have invested in this capability
consistently over the course of the past five years. Furthermore,
highly regulated products require highly technical marketing and we
have also invested heavily in our marketing and technical support
functions during the year.
We continue to invest in the best systems for a business of our
size and complexity. The organisation is deeply committed to a
digital transformation programme across all facets of our
operation. Equally, we have committed significant expenditure in
our IT and cyber security infrastructure, increasing spend to
GBP1.2m from GBP0.8m in the previous year.
New product development is a key focus for the Board and we
continued to invest during the year in three areas:
-- The 3T platform which is our app-based Train, Trace and Test
tool that enables a user of a Tristel medical device high-level
disinfectant to record all steps of the decontamination
process.
-- AI - capabilities incorporated into the app that enable
objective verification that the key steps in the decontamination
process have been performed correctly.
-- Colour change technology - visual indicators that provide
compliance training tools for the user and which can be
incorporated into the decontamination process to ensure key steps
in the decontamination process are performed correctly.
We made 62 patent applications during the year and six
applications went to grant. During the year we invested GBP0.9m in
product development and GBP0.3m in securing and maintaining
intellectual property protection.
NORTH AMERICA
During the current financial year, we will launch Tristel ULT in
the United States for the high-level disinfection of ultrasound
probes. Our business partner for North and South America is Parker
Laboratories Inc, located in New Jersey, who will manufacture our
products and will sell Tristel ULT through its well-established
distribution network. Parker's own product range is focussed on the
conductive gels that are used in every ultrasound scan and the
Parker gel and the Tristel hand-applied high-level disinfectant are
perfect complementary products for all ultrasound scans, of which
we estimate 215 million are performed annually in the United
States.
In Canada we have secured approval from Canada Health for
Tristel OPH as a high-level disinfectant for ophthalmic devices and
have appointed Innova Medical as our distributor into the Canadian
ophthalmic market. Sales have commenced in the first quarter of
financial year 2024.
OUR PEOPLE
I would like to thank our employees for their commitment
throughout the year.
Breaking into the North American market is a remarkable
achievement for the Company and the team that worked tirelessly on
the FDA submission over many years. By securing approval from the
FDA we have joined a very small group of high-level disinfectant
products that are approved for sale in the world's largest
ultrasound market, and we have done so with a technology and
product format that our young business invented twenty years ago.
Today, the organisation has matured into a globally recognised
force in the infection prevention industry - an achievement that we
can attribute to the creativity and resourcefulness of our
employees.
RESULTS
Our gross profit margin increased slightly to 81% (restated
2022: 80%). Overheads (excluding share-based payments, depreciation
and amortisation) rose by 14% from GBP17.3m to GBP19.9m,
principally due to the increase in headcount from 204 to 224. The
associated increase in wages and salaries was GBP1.7m (excluding
share-based payments).
Adjusted pre-tax profit (before share-based payments of GBP1.1m
and impairments of nil) rose 35% from GBP4.6m to GBP6.2m. Statutory
pre-tax profit increased to GBP5.1m from GBP1.6m and the statutory
margin rose to 14% from 5%. Charges associated with share-based
payments have been included as adjusting items. Although
share-based compensation is an important aspect of the compensation
of our employees and executives, management believes it is useful
to exclude share-based compensation expenses from adjusted profit
measures to better understand the long-term performance of the
underlying business.
Earnings per share (EPS) (adjusted for the add-back of the
share-based payment charge and impairment charges) was 10.67 pence
(restated 2022: 7.68 pence). Basic EPS was 9.44 pence (restated
2022: 2.09 pence) and diluted EPS was 9.34 pence (restated 2022:
2.07 pence).
See note 9 for reconciliation of non-GAAP measures.
BALANCE SHEET, CASH AND DIVID
The Group has continued to be highly cash generative during the
year and the balance sheet is debt free (with the exception of
lease liabilities). The combined cash and short-term deposit
balance at 30 June 2023 was GBP9.5m, with GBP2.9m being on short
term deposit (2022: GBP8.9m).
The Board is recommending a final dividend of 7.88 pence (2022:
3.93 pence). Combined with the interim dividend of 2.62 pence, the
total dividend pay-out for the year will be 10.5 pence per share, a
10% increase on last year's total dividend pay-out of 9.55 pence,
which included a special dividend of 3 pence. Going forward the
Board's intention is to increase the dividend annually in line with
the year's increase in EPS, committing to minimum dividend growth
of 5%. This final dividend will be paid on 22 December 2023, to
shareholders on the register on 24 November 2023 , the associated
ex-dividend date is 23 November 2023.
OUTLOOK
During 2022 we rationalised our product portfolio to further
improve gross margins, sharpen our focus on the hospital market and
our chlorine dioxide technology. During 2023 the negative impact on
our business of both Brexit and COVID-19 receded and we resumed
both top and bottom-line growth. We now have a normalised
marketplace in all 40 countries in which we operate and access to
the North American market. The growth possibilities for the Company
are stronger than ever.
Dr Bruno Holthof
Non Executive Chair
16 October 2023
Chief Executive's Report
Overview
The year ended 30 June 2023 was encouraging for the Group. The
highlights were:
-- The beneficial impact of the product portfolio
rationalisation, which was completed during 2022, flowed through to
the results for 2023;
-- The negative impact of both Brexit and COVID-19 receded and
we resumed top and bottom-line growth in line with our pre-pandemic
trajectory;
-- We gained clearance from the United States Food and Drug
Administration for our Tristel ULT high-level disinfectant and we
will be actively promoting our medical device disinfectants in
North America during 2024.
Financial targets
In October 2022 we established our financial plan for the three
years to 30 June 2025, which was a continuation of the plan for the
prior three-year period ending in June 2022. The three key
financial targets of both the old and new plans are:
i) sales growth in the range of 10% to 15% per annum as an
annual average over the three years;
ii) the achievement in each year of an EBITDA margin (excluding
share-based payment charge) of at least 25%, and
iii) to increase profit before tax (excluding share-based
payments) year-on-year, independently of the other two targets.
The COVID-19 pandemic and the disruption to NHS purchasing
patterns caused by Brexit negatively impacted our performance over
the period. The business is now in a much stronger position. For
transparency, our performance against the targets set in 2019 has
been:
Financial year Revenue Annual Average *Adjusted Increase
GBPm revenue revenue EBITDA in profit
growth growth margin before tax
% (excluding
SBP charge)
Ended 30.06.19 (base 26.2 - - - -
year)
-------- --------- --------- ---------- -------------
Ended 30.06.20 31.7 21.0% 21.0% 30.9% Yes
-------- --------- --------- ---------- -------------
Ended 30.06.21 - restated 31.0 -2.2% 9.4% 27.1% No
-------- --------- --------- ---------- -------------
Ended 30.06.22 31.1 0.3% 6.4% 24.0% No
-------- --------- --------- ---------- -------------
Ended 30.06.23 36.0 16% 4.7% 24.9% Yes
-------- --------- --------- ---------- -------------
*See note 9.
Our marketplace and technology
Our entire business is focussed on preventing the transmission
of microbes from one object or person to another. We pursue this
purpose because microbes are the cause of infection in humans. They
can cause illness or death and place a heavy cost on individuals
and society. We achieve our purpose by developing products based
upon a very powerful disinfectant: chlorine dioxide, of which we
have a proprietary formulation.
Our mission is most relevant to hospitals where the risk of
transmission of infection between individuals is highest. Infection
prevention is a basic requirement for the safe and effective
provision of healthcare, true for all hospitals in all countries.
Over 98% of our revenues are of consumable products performing a
vital function that is non-discretionary.
Our strategy focusses upon our proprietary chlorine dioxide
chemistry and two principal applications for it: first, the
high-level disinfection of medical devices under the Tristel brand
(accounting for 86% of continuing product revenues in the year);
and second, the disinfection of surfaces in hospitals under the
Cache brand (accounting for 9% of continuing product revenues in
the year). Within this second activity, we make a distinction
between sporicidal efficacy that is achieved with the use of our
chlorine dioxide chemistry, and the low-level performance claims
that are made by most other disinfectant chemistries. Our objective
is to create a clearly identifiable segment within surface
disinfection for sporicidal products and to be the global market
leader in this segment.
With respect to Tristel, our proposition is unique in two
respects: first, we are the only provider of chlorine dioxide-based
high-level disinfectants validated and regulated for use with
semi-critical medical devices; and second, we are unique in
applying the active ingredient in a manual process. Other
high-level disinfection processes using the active ingredients
peracetic acid and hydrogen peroxide - alternatives to chlorine
dioxide - require automated equipment to contain and control the
chemistry.
Manual application means Tristel products are ideally suited for
hospital departments that carry out diagnostic procedures with
small heat-sensitive medical instruments. These include:
nasendoscopes used in Ear, Nose and Throat departments;
laryngoscope blades used in emergency medicine; cardio echo probes
used in the diagnosis of heart disease; tonometers used in
ophthalmology, and ultrasound probes used in both women and men's
health. In these areas of the hospital, we are the simplest,
quickest, and most affordable high-performance disinfection method
available. Consequently, in geographical markets in which we have
been present for some time, we hold truly significant market
share.
The cleaning and disinfection of environmental surfaces in
hospitals is ubiquitous and the global expenditure by hospitals on
surface disinfection is far greater than the expenditure on
decontaminating medical devices. The capability of a disinfectant
to kill bacterial spores is the defining hallmark of the
best-performing biocides, and chlorine dioxide is one of the elite
chemistries that can kill spores.
Revenue
We segment our business to reflect our corporate strategy and
geographical spread. We have developed distinctly different brands
for the two product categories: Tristel for medical device
disinfection and Cache for sporicidal surface disinfection. Our
strategic intention is to develop the Tristel and Cache brands and
product portfolios with a significant degree of independence from
each other, but both anchored upon our chlorine dioxide technology
platform and using the same sales teams in all countries.
The other product category, which we regard as non-core,
represents a much-reduced number of products that were not
discontinued in our rationalisation programme, and whose remaining
product life span is relatively short.
During the year, the revenue split across these product
categories was:
GBPm Brand Revenue % of total Revenue % of total
2021-22 2022-23
Medical device decontamination
in hospitals Tristel 25.4 82% 30.8 86%
-------- -------- ---------- -------- ----------
Environmental surface disinfection
in hospitals Cache 3.2 10% 3.3 9%
-------- -------- ---------- -------- ----------
Other - non-core Various 1.0 3% 1.9 5%
-------- -------- ---------- -------- ----------
Continuing products 29.6 95% 36.0 100%
-------- ---------- -------- ----------
Discontinued products Various 1.5 5% 0 0%
-------- -------- ---------- -------- ----------
Group 31.1 100% 36.0 100%
-------- ---------- -------- ----------
Revenue by channel
We sell our products directly to end-users in those markets in
which we have established a subsidiary, and through distributors in
markets where we have no corporate presence. During the year, the
revenue split by sales channel was:
2021-22 2022-23 Year-on-Year Percentage
Revenue Revenue change change
Hospital medical device
decontamination: Tristel
--------- --------- ------------- -----------
UK 9.7 11.9 2.2 23%
--------- --------- ------------- -----------
Australia 3.0 3.5 0.5 17%
--------- --------- ------------- -----------
Germany 4.5 5.0 0.5 11%
--------- --------- ------------- -----------
Western Europe 4.2 5.2 1.0 24%
--------- --------- ------------- -----------
Italy 1.0 1.4 0.4 40%
--------- --------- ------------- -----------
Other ROW 3.0 3.8 0.8 27%
--------- --------- ------------- -----------
Tristel global 25.4 30.8 5.4 21%
--------- --------- ------------- -----------
Hospital environmental
surface disinfection:
Cache
--------- --------- ------------- -----------
UK 2.3 2.4 0.1 4%
--------- --------- ------------- -----------
Australia 0.1 0.1 - -
--------- --------- ------------- -----------
Germany 0.1 0.1 - -
--------- --------- ------------- -----------
Western Europe 0.2 0.2 - -
--------- --------- ------------- -----------
Italy 0.0 0.0 - -
--------- --------- ------------- -----------
Other ROW 0.5 0.5 - -
--------- --------- ------------- -----------
Cache global 3.2 3.3 0.1 3%
--------- --------- ------------- -----------
Other revenue: various
brands 1.0 1.9 0.9 90%
--------- --------- ------------- -----------
Continuing products 29.6 36.0 6.4 22%
--------- --------- ------------- -----------
Discontinued products 1.5 0 (1.5) (100%)
--------- --------- ------------- -----------
Group 31.1 36.0 4.9 16%
--------- --------- ------------- -----------
Revenue by geography
The proportion of our revenue generated in overseas markets
continued to increase and reached 65%. The history over the
previous five years is shown in the table below.
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Revenue split %
-------- -------- -------- -------- -------- --------
UK 49% 45% 40% 37% 35% 35%
-------- -------- -------- -------- -------- --------
Overseas 51% 55% 60% 63% 65% 65%
-------- -------- -------- -------- -------- --------
Annual revenue growth
%
-------- -------- -------- -------- -------- --------
UK 2% 9% 7% -10% -3% 14%
-------- -------- -------- -------- -------- --------
Overseas 19% 26% 32% 3% 2% 17%
-------- -------- -------- -------- -------- --------
*Sales made to international distributors are included within
overseas in the above table to align with the location of the end
customer. As these sales originate within the UK subsidiary, for
segmental reporting purposes they are included within the UK.
We have 14 subsidiaries selling directly into the hospital
marketplace in the United Kingdom, Belgium, the Netherlands,
France, Italy, Germany, Switzerland, Poland, Hong Kong, China,
Malaysia, Singapore, Australia, and New Zealand. We have
subsidiaries in the United States, Japan, India, Spain and Ireland
which are not yet active in terms of selling. We closed our Russian
subsidiary early in FY22.
During the year, in another 26 countries, we sold products
through national distributors.
Our Strategic Assets
We consider the assets that enable the Group to achieve its
strategic goals to be:
Our chlorine dioxide chemistry
There are three critically important elements that account for
the unique positioning of our chlorine dioxide chemistry:
1. The proprietary formulation,
2. Our focus over two decades on exploring the potential for
chlorine dioxide in the decontamination of medical instruments.
There is another application for chlorine dioxide chemistry which
all other businesses have concentrated upon which is water
treatment. From the inception of our business in the 1990's we
looked in a different direction - towards medical device
disinfection - a direction which others have not followed, and this
has given us the pioneer's advantage,
3. The length of time that we have enjoyed this pioneer position
has allowed us to collate a significant body of knowledge,
including published scientific data, the testimony of almost two
decades of safe use, a significant global footprint of regulatory
approvals and a library of proven compatibility with hundreds of
medical instruments, all of which would take a new entrant
significant time and cost to match.
Our regulatory programme succeeded in attaining 16 approvals for
11 products in nine countries during the year. This includes FDA
grant of the De Novo request for Tristel ULT.
Intellectual property protection
On 30 June 2023, we held 142 patents granted in 32 countries
providing legal protection for our products.
In its broadest sense, our intellectual property relates to:
1. Patents, trademarks and registered designs,
2. The scientific validation of our chemistry and our products
that have entered the public domain, via a number of peer-reviewed
and published papers,
3. The certification by medical device manufacturers that our
chemistry is compatible with their products. We enjoy official
compatibility with the instrumentation of 56 medical device
manufacturer, with respect to 1,449 of their individual models.
Our people possess an unrivalled body of knowledge relating both
to infection prevention and to chlorine dioxide, and they are a key
asset for the future of our business. Their domain knowledge
relates to the manufacture of chlorine dioxide-based products and
their development. The Company's R&D investment focusses
exclusively on our proprietary technology, searching for
improvements in microbial efficacy, reductions in hazards, and
greater efficiency in manufacture. In parallel, we invest in the
creation of packaging and delivery forms that enhance and simplify
the delivery of the chemistry and the user experience.
Progress in North America
The Company made significant progress in North America during
the year. The key event in June was the clearance by the FDA which
completed its review of the Company's De Novo request for
classification (Class II) of Tristel ULT as a high-level
disinfectant, and granted its approval for sale.
Tristel Duo, the Company's intermediate level disinfectant
approved by the US Environmental Protection Agency (EPA) for use on
the ultrasound console and the non-invasive parts of the endocavity
probe, was registered in all states in the USA.
The nationwide launch of Tristel ULT will commence on October
2023. The Company has established a manufacturing base with Parker
Laboratories Inc., New Jersey, and will utilise Parker's national
distribution network for the ultrasound market.
In Canada, the Company launched Tristel OPH as a high-level
disinfectant for ophthalmic devices at the country's Infection
Prevention Conference in May 2023.
Outlook
The enormous achievement of the year has been to gain FDA
approval, thereby gaining access to the largest healthcare market
in the world and creating the opportunity to leverage the
significance of an FDA approval in countries that look to the USA
regulator for their own practice. This includes Central and South
America. We now have the opportunity to establish a global
footprint for our products and technology. The outlook for the
Company is the strongest it has been in its 30 year history.
Paul Swinney
Chief Executive Officer
Tristel plc
Tristel plc
Consolidated Income Statement for the Year Ended 30 June
2023
*Restated
2023 2022
Note GBP 000 GBP 000
Revenue 3 36,009 31,123
Cost of sales (6,834) (6,182)
---------- -----------------------
Gross profit 29,175 24,941
Distribution expenses (323) (282)
Share based payments (1,061) (596)
Depreciation, amortisation and impairments (2,618) (5,216)
Administrative expenses, excluding share-based
payments, depreciation, amortisation and impairment (19,896) (17,265)
---------- -----------------------
Total administrative expenses (23,575) (23,077)
---------- -----------------------
Other operating income 4 167
Operating profit 5,281 1,749
---------- -----------------------
Finance income 10 1
Finance costs (179) (195)
---------- -----------------------
Net finance cost (169) (194)
---------- -----------------------
Profit before tax 5,112 1,555
Income tax expense 4 (651) (568)
---------- -----------------------
Profit for the year 4,461 987
========== =======================
Profit attributable to:
Owners of the company 4,461 987
========== =======================
Earnings per share from total and continuing
operations attributable to equity holders of
the parent
2023 2022
Restated
Basic - pence 6 9.44 2.09
Diluted - pence 6 9.34 2.07
The above results were derived from continuing operations.
* The Group has reconsidered its accounting policy for the
presentation of distribution costs in the income statement. The
prior year income statement has been restated for the
reclassification of costs between cost of sales and distribution
costs. As a result, the prior year has been restated to reflect a
decrease in the cost of sales of GBP282,000 with a corresponding
increase in distribution expenses. Note 8 details the only change
to the profit before tax and profit after tax for financial year
2022.
Tristel Plc
Consolidated Statement of Comprehensive Income for the Year
Ended 30 June 2023
2023 2022
GBP 000 GBP 000
Profit for the year 4,461 987
Items that may be reclassified subsequently to
profit or loss
Foreign currency translation gains/(losses) (214) 138
-------- --------
Total comprehensive income for the year 4,247 1,125
======== ========
Total comprehensive income attributable to:
Owners of the company 4,247 1,125
======== ========
Tristel Plc
(Registration number: 04728199)
Consolidated Statement of Financial Position as at 30 June
2023
Restated Restated
30 June 30 June 1 July
Note 2023 2022 2021
GBP000 GBP000 GBP000
Assets
Non-current Assets
Property, plant and equipment 2,922 2,791 3,119
Right of use assets 4,905 5,568 6,083
Goodwill 5,156 5,242 5,265
Intangible assets 4,757 4,318 6,704
Deferred tax assets 1,286 1,826 2,822
---------- --------- ---------
19,026 19,565 23,993
---------- --------- ---------
Current assets
Inventories 4,569 4,420 4,266
Trade and other receivables 7,081 5,851 5,255
Income tax receivable 1,146 962 170
Short term investments 2,432 - -
Cash and cash equivalents 7,113 8,883 8,094
---------- --------- ---------
22,341 20,116 17,785
---------- --------- ---------
Total assets 41,367 39,681 41,778
========== ========= =========
Equity and liabilities
Equity
Share capital 7 474 473 471
Share premium 14,188 13,996 13,600
Foreign currency translation
reserve (279) (65) (203)
Merger reserve 2,205 2,205 2,205
Retained earnings 14,089 13,078 15,334
---------- --------- ---------
Equity attributable to owners
of the company 30,677 29,687 31,407
Non-controlling interests 7 7 7
Total Equity 30,684 29,694 31,414
---------- --------- ---------
Non-Current liabilities
Lease liabilities 4,321 4,854 5,372
Deferred tax liabilities 599 720 637
---------- --------- ---------
4,920 5,574 6,009
---------- --------- ---------
Current Liabilities
Trade and other payables 4,801 3,222 3,476
Income tax payable 103 - -
Lease liabilities 859 942 629
---------- --------- ---------
5,763 4,413 4,355
---------- --------- ---------
Total liabilities 10,683 9,987 10,364
---------- --------- ---------
Total equity and liabilities 41,367 39,681 41,778
========== ========= =========
Tristel Plc
Consolidated Statement of Changes in Equity for the Year Ended
30 June 2023
Foreign
Share Share currency Merger Retained Non- controlling Total
capital premium translation reserve earnings Total interests equity
Note GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
At 1 July 2022 473 13,996 (65) 2,205 12,371 28,980 7 28,987
Deferred tax asset
restatement 8 - - - - 333 333 - 333
IFRS 16
Restatement 8 - - - - 374 374 - 374
-------- -------- ------------ -------- --------- -------- ---------------- --------
As restated at 1
July 2022 473 13,996 (65) 2,205 13,078 29,687 7 29,694
Profit for the
year - - - - 4,461 4,461 - 4,461
Exchange
difference on
translation
of foreign
operations - - (214) - - (214) - (214)
-------- -------- ------------ -------- --------- -------- ---------------- --------
Total
comprehensive
income - - (214) - 4,461 4,247 - 4,247
Dividends - - - - (4,511) (4,511) - (4,511)
New share capital
subscribed 7 1 192 - - - 193 - 193
Share based
payment
transactions - - - - 1,061 1,061 - 1,061
-------- -------- ------------ -------- --------- -------- ---------------- --------
At 30 June 2023 474 14,188 (279) 2,205 14,089 30,677 7 30,684
======== ======== ============ ======== ========= ======== ================ ========
Right of use assets, deferred tax asset, lease liabilities and
retained earnings for the prior year have been restated. See note
8.
Foreign Restated* Restated*
Share Share currency Merger Retained Restated* Non- controlling Total
capital premium translation reserve earnings Total interests equity
Note GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
At 1 July 2021 - 471 13,600 (203) 2,205 14,687 30,760 7 30,767
Deferred tax
asset
restatement 8 - - - - 333 333 - 333
IFRS 16
restatement 8 - - - - 314 314 - 314
As at 1 July
2021 restated 471 13,600 (203) 2,205 15,334 31,407 7 31,414
Profit for the
year - - - - 987 987 - 987
Exchange
difference on
translation
of foreign
operations - - 138 - - 138 - 138
-------- -------- ------------ -------- --------- --------- ---------------- ---------
Total
comprehensive
income - - 138 - 987 1,125 - 1,125
Dividends - - - - (3,091) (3,091) - (3,091)
New share
capital
subscribed 7 2 396 - - - 398 - 398
Deferred tax
through equity - - - - (795) (795) - (795)
Current tax
through equity - - - - 47 47 - 47
Share based
payment
transactions - - - - 596 596 - 596
-------- -------- ------------ -------- --------- --------- ---------------- ---------
At 30 June 2022
- restated 473 13,996 (65) 2,205 13,078 29,687 7 29,694
======== ======== ============ ======== ========= ========= ================ =========
Tristel Plc
Consolidated Statement of Cash Flows for the Year Ended 30 June
2023
Restated
2023 2022
Cash flows from operating activities GBP000 GBP000
Profit before tax 5,112 1,555
Adjustments to cash flows from non-cash items
Depreciation of leased assets 1,000 968
Depreciation of plant, property & equipment 734 632
Impairment of goodwill 68 67
Amortisation of intangible assets 816 1,105
Impairment of intangibles - 2,439
Share based payments - IFRS 2 1,061 596
Loss on disposal of property, plant and equipment 69 20
Lease interest 177 193
Other interest 2 2
Finance income (10) (1)
------- --------
9,029 7,576
Working capital adjustments
(Increase)/decrease in inventories (149) (154)
(Increase)/decrease in trade and other receivables (1,230) (596)
(Decrease)/increase in trade and other payables 1,330 114
Lease interest paid (177) (193)
Corporation tax paid (313) (772)
------- --------
Net cash flow from operating activities 8,490 5,726
------- --------
Cash flows from investing activities
Interest received 10 1
Purchase of intangible assets (1,570) (898)
Purchase of property plant and equipment (853) (305)
Cash deposit to short term investments (2,432) -
------- --------
Net cash used in investing activities (4,845) (1,202)
------- --------
Cash flows from financing activities
Payment of lease liabilities (1,126) (1,103)
Share issues 7 193 398
Dividends paid 5(4,511) (3,091)
------- --------
Net cash used in financing activities (5,444) (3,796)
------- --------
Net increase in cash and cash equivalents (1,799) 728
Cash and cash equivalents at the beginning
of the year 8,883 8,094
Exchange differences on cash and cash equivalents 29 61
------- --------
Cash and cash equivalents at the end of the
year 7,113 8,883
======= ========
Net Funds - liabilities from financing activities and cash and
cash equivalents
Leases Cash and Short term Total
cash equivalents investments
GBP000 GBP000 GBP000 GBP000
Net funds at 30 June 2021
(restated) (6,251) 8,094 - 1,843
Cash movement - 728 - 728
Payment of lease liabilities 1,103 - - 1,103
Lease interest (194) - - (194)
Acquisition - leases (427) - - (427)
Foreign exchange adjustments (27) 61 - (34)
------- ----------------- ------------ ------
Net funds as at 30 June 2022
(restated) (5,796) 8,883 - 3,087
------- ----------------- ------------ ------
Cash movement - (1,799) 2,432 633
Payment of lease liabilities 1,126 - - 1,126
Lease interest (176) - - (176)
Acquisition - leases (469) - - (465)
Terminations - leases 127 - - 124
Foreign exchange adjustments 7 29 - 36
------- ----------------- ------------ ------
Net funds as at 30 June 2023 (5,180) 7,113 2,432 4,365
------- ----------------- ------------ ------
1 Accounting Policies
Basis of accounting
This financial information has been prepared in accordance with
UK adopted international accounting standards and in accordance
with the provisions of the Companies act 2006.
Tristel plc, the Group's ultimate parent company, is a public
limited company incorporated and domiciled in the United
Kingdom.
Basis of consolidation
The Group financial statements consolidate those of the Company
and all of its subsidiary undertakings drawn up to 30 June 2023.
Subsidiaries are entities over which the Group has rights or is
exposed to variable returns from its involvement with the investee
and has the power to affect those returns by controlling the
financial and operating policies so as to obtain benefits from its
activities. The Group obtains and exercises control through voting
rights or IP held.
Unrealised gains on transactions between the Group and its
subsidiaries are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the
asset transferred. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
Acquisitions of subsidiaries are dealt with by the acquisition
method. The acquisition method involves the recognition at fair
value of all identifiable assets and liabilities, at the
acquisition date, regardless of whether or not they were recorded
in the financial statements of the subsidiary prior to acquisition.
These fair values are also used as the basis for subsequent
measurement in accordance with the Group accounting policies.
Goodwill is stated after separating out identifiable intangible
assets. Goodwill represents the excess of the aggregate of the
consideration transferred and the amount of non-controlling
interest over the fair value of the Group's share of the
identifiable net assets of the acquired subsidiary at the date of
acquisition.
Non-controlling interests, presented as part of equity,
represent a proportion of a subsidiary's profit or loss and net
assets that is not held by the Group. The Group attributes total
comprehensive income or loss of subsidiaries between the assets of
the parent and the non-controlling interests based on their
respective ownership interests.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group
'controls' an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
The financial statements of subsidiaries are included in the
consolidated financial statements from the date on which control
commences until the date on which control ceases. Interests in
subsidiaries are accounted for at cost less accumulated impairment
losses.
Step acquisitions
Prior to control being obtained, the Company accounts for its
investment in the equity interests of an acquiree in accordance
with the nature of the investment by applying the relevant
standard, e.g. IFRS 11 Joint Arrangements or IFRS 9 Financial
Instruments. As part of accounting for the business combination,
the Company remeasures any previously held interest at fair value
and takes this amount into account in the determination of goodwill
as noted above. Any resultant gain or loss is recognised in profit
or loss or other comprehensive income as appropriate.
Audit exemption
The Directors confirm that in accordance with sections 479A and
479C of the Companies Act 2006, Tristel Plc, as parent company of
the below entities, has given a parental guarantee to enable those
companies to claim exemption from audit. This guarantee relates to
the year ended 30 June 2023. The members of this companies have
agreed to the exemption from the audit by virtue of the guarantee
given by Tristel Plc, for the year ended 30 June 2023.
-- Tristel International Limited - Registered number
07874262
-- Scorcher Idea Limited - Registered number 04602679
-- Tristel Solutions Limited - Registered number 03518312
Changes in accounting policy
Since 30 June 2023 a number of standards, amendments to or
interpretations of standards have been issued as shown by the
following two tables, as follows:
Adoption of new and revised standards
The following accounting standards, interpretations and
amendments have been adopted by the Group in the Year Ended 30 June
2023:
Amendments to the following standards:
IFRS 3 Business combinations
IAS 16 Property, plant and equipment
IAS 37 provisions, contingent liabilities and contingent assets
These amended standards did not have a material effect on the
Group.
Accounting standards not yet adopted by the Group
The following accounting standards, interpretations and
amendments have been issued by the IASB but had either not been
adopted by the UK or were not yet effective in the UK at 30 June
2023:
IAS 1 Presentation of Financial Statements: Non current liabilities
with covenants
IAS 12 Income Taxes: deferred tax related to assets and liabilities
arising from a single transaction and International tax reform - pillar
two model rules
IAS 7 Amendment in relation to Supplier finance
IFRS 16 Leases: A mendment - Leases on sale and leaseback
IFRS 17 Insurance Contracts
The Directors do not expect the standards above to have a
material effect and have chosen not to adopt any of the above
standards and interpretations earlier than required.
2. Publication non-statutory accounts
The financial information set out above does not constitute the
company's statutory accounts for the years ended 30 June 2023 or
2022 but is derived from those accounts. Statutory accounts for
2022 have been delivered to the registrar of companies, and those
for 2023 will be delivered in due course. The auditor has reported
on those accounts; their reports were (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
The Board of Tristel plc approved the release of this
Preliminary Announcement on 16 October 2023.
Segmental Analysis
3
The Group has reassessed it's operating segments and Group
revenue lines are split into fourteen geographic regions, which
span the different Group entities. In accordance with IFRS 8,
aggregation criteria has been applied to six operating segments
where similar economic characteristics are shared. The directors
consider the operating segments to have similar economic
characteristics as they have similar operating margins, and the
nature of products sold, and customers are similar. Management
consider these operating regions under six reportable segments. The
geographic segments consider the location of the sale and product
type sold, which is split into three sub divisions. The Company's
operating segments are identified initially from the information
which is reported to the chief operating decision maker which for
Tristel is the CEO.
The first product division concerns the manufact ure and sale of
medical device decontamination products which are used primarily
for infection control in hospitals. These products generates
approximately 86% of Company revenues (2022: 82%).
The second division which constitutes 9% (2022: 10%) of the
business activity, relates to the manufacture and sale of hospital
environmental surface disinfection products.
The third division addresses the pharmaceutical and personal
care product manufacturing industries, veterinary and animal
welfare sectors and has generated 5% (2022: 8%) of the Company's
revenues this year. A number of the products contained within this
division were discontinued during the prior year.
The operation is monitored and measured on the basis of the key
performance indicators of each segment, these being revenue and
profit before tax, and strategic decisions are made on the basis of
revenue and profit before tax generating from each segment.
The Group's revenues from external customers are divided into
the following geographical areas:
Hospital Hospital Other Total Profit
medical device environmental revenues 2023 Before
decontamination surface Tax 2023
disinfection
GBP000 GBP000 GBP000 GBP000 GBP000
UK to UK
and Overseas
distributors 11,895 2,381 1,017 15,294 4,179
Australia 3,504 22 134 3,660 165
Germany 4,979 40 89 5,108 230
Western
Europe 5,244 240 347 5,831 262
Italy 1,429 5 - 1,434 65
Other ROW 3,766 608 309 4,683 211
Total 30,817 3,296 1,896 36,009 5,112
================= ===============
Hospital Hospital Other Total Profit
medical device environmental revenues 2022 Before
decontamination surface Tax 2022
disinfection
GBP000 GBP000 GBP000 GBP000 GBP000
UK to UK
and Overseas
distributors 9,749 2,301 1,559 13,610 768
Australia 2,964 45 83 3,091 139
Germany 4,502 16 114 4,632 208
Western
Europe 4,234 283 321 4,838 218
Italy 1,007 3 - 1,010 45
Other ROW 2,965 530 447 3,942 177
Total 25,422 3,178 2,523 31,123 1,555
----------------- --------------- ---------- ------- ----------
Revenues from external customers in the Company's domicile
(United Kingdom), as well as its other major markets (Rest of the
World) have been identified on the basis of internal management
reporting systems, which are also used for VAT purposes.
R evenues derived from the UK (the largest CGU stated above) for
2023 were GBP15.924m (2022: GBP13.610m). Revenues from all overseas
subsidiaries total GBP20.085m (2022: GBP17.513 m.)
Hospital medical device decontamination revenues were derived
from a large number of customers but include GBP6.133m from a
single customer in UK which makes up 20% of this product category's
revenue (2022: GBP4.572m, being 18%). Hospital environmental
surface disinfection revenues were derived from a number of
customers but include GBP1.82m from a single customer in the UK
which makes up 5% of this product category's revenue (2022:
GBP1.636m, being 51%). Other revenues also were derived from a
number of customers, with the largest customer in the UK
accountable for GBP0.172m, which represents 7% of revenue for that
product category (2022: GBP0.124m, 5% from a single customer).
During the year 22 % of the Group's total revenues were earned from
a single customer (2022: 20%).
Hospital Hospital Other revenues Total 2023
medical device environmental
decontamination surface disinfection
GBP000 GBP000 GBP000 GBP000
Revenue
From external
customers 30,816 3,296 1,897 36,009
Cost of material (4,494) (1,437) (903) (6,834)
Gross profit 26,323 1,859 993 29,175
Gross margin 85% 56% 51% 81%
Centrally incurred income and expenses
not attributable to individual segments:
Distribution costs (323)
Depreciation and amortisation of non-financial
assets (2,618)
Other administrative expenses (19,896)
Share-based payments (1,061)
Other income 4
Operating profit 5,281
Operating profit can be reconciled to
Group profit before tax as follows:
Finance (expense) (169)
Total profit before tax 5,112
Hospital Hospital Other revenues Total 2022
medical device environmental
decontamination surface disinfection
GBP000 GBP000 GBP000 GBP000
Revenue
From external
customers 25,422 3,178 2,523 31,123
Cost of material (3,883) (1,236) (1,063) (6,182)
Gross profit 21,539 1,942 1,460 24,941
Gross margin 85% 61% 58% 80%
Centrally incurred income and expenses
not attributable to individual segments:
Distribution costs (282)
Depreciation and amortisation of non-financial
assets (2,772)
Other administrative expenses (17,270)
Share-based payments (596)
Other income 167
Impairment of intangible assets (2,439)
Operating profit 1,749
-------------------
Operating profit can be reconciled to
Group profit before tax as follows:
Finance (expense) (194)
-------------------
Total profit before tax 1,555
===================
4. Income Tax
Tax charged in the income statement
2023 2022
GBP000 GBP000
Current taxation
Current tax 285 284
Current tax adjustment to prior periods (53) -
------ ------
232 284
Deferred tax
Arising from origination and reversal of temporary
differences 817 114
UK deferred tax adjustment to prior periods (476) 314
Tax rate effect 78 (144)
------ ------
419 284
------ ------
Tax expense in the income statement 651 568
====== ======
The tax on profit before tax for the year is lower than the
standard rate of corporation tax in the UK (2022 - higher than the
standard rate of corporation tax in the UK) of 20% (2022 -
19%).
The differences are reconciled below:
2023 2022
GBP 000 GBP 000
Profit before tax 5,112 1,555
======== ========
Corporation tax at standard rate 1,048 295
Adjustment in respect of prior years (529) 314
Expenses not deductible for tax purposes 285 55
Increase from effect of foreign tax rates 46 25
Utilisation of previously recognised tax losses,
recognised tax losses carried forward and other
differences 464 118
Tax rate differences 78 (144)
Enhanced relief on qualifying scientific research
expenditure (98) (95)
Patent box relief (643) -
--------
Total tax charge 651 568
======== ========
5. Dividends
Amounts recognised as distributions to equity
holders in the year:
2023 2022
GBP000 GBP000
Ordinary shares of 1p each
Final dividend for the year ended 30 June
2022 of 3.93p (2021: 3.93p) per share 1,856 1,854
Special dividend for the Year Ended 30 June
2022 of 3.00p per share (2021: nil) 1,417 -
Interim dividend for the Year Ended 30 June
2023 of 2.62p (2022: 2.62p) per share 1,238 1,237
------ ------
4,511 3,091
Proposed final dividend for the Year Ended
30 June 2023 of 7.88p (2022: 3.93p) per share 3,728 1,856
Special dividend for the Year Ended 30 June
2022 of 3.00p per share (2021: nil) - 1,417
The proposed final dividend is subject to approval by
shareholders at the forthcoming Annual General Meeting and has not
been included as a liability in the financial statements.
6. Earnings per share
The calculations of earnings per share
are based on the following profits and
number of shares:
2023 2022
GBP000 GBP000
Retained profit for the financial year
attributable to equity holders of the
parent 4,461 987
------ ------
Shares Shares
'000 '000
Number Number
Weighted average number of ordinary shares
for the purpose of basic earnings per
share 47,247 47,187
Share options 111 582
------ ------
47,358 47,769
====== ======
Earnings per ordinary share
Basic 9.44p 2.09p
Diluted 9.34p 2.07p
The Group also presents an adjusted basic earnings per share
figure which excludes the fair value movement on investments and
impairments and share-based payments charges:
2023 2022
GBP000 GBP000
Retained profit for the financial year
attributable to equity holders of the
parent 4,461 987
------ ------
Adjustments:
Impairment of intangible assets - 2,439
Share based payments 1,061 596
------ ------
Tax on share-based-payments and impairment
of intangible assets (483) (400)
------ ------
Net adjustments 578 2,635
Adjusted earnings 5,039 3,622
====== ======
Adjusted basic earnings per ordinary
share 10.67p 7.68p
====== ======
7. Share Capital
Allotted, called up and fully paid shares
2023 2022
No. 000 GBP 000 No. 000 GBP 000
Ordinary of GBP0.01 each 47,309 473.09 47,244 472.44
Number GBP000
30 June 2022 47,249,993 473
Issued during the year 85,000 1
---------- ---------
30 June 2023 47,309,993 474
========== =========
85,000 ordinary shares of 1 pence each, related to the exercise
of employee share options were issued during the year. (2022:
155,550). The weighted average exercise price was GBP2.07 (2022:
GBP3.15 ). The exercise of employee share options in the year
resulted in a movement in the share premium account of GBP192,000
(2022: GBP396,000).
8. Prior year restatement
Restatement 1
During the current financial year the group adopted a suite of
lease accounting software. The software has outlined the need for
a restatement of the financial position of prior years which is
detailed below. These differences emerged from varying discount
rate applications and omitted leases, which in current year have
been supplied by an independent third party due to the lack of borrowing
within the Group and rectified respectively. As a result of the
restatement, the operating profit before tax and profit after tax
for the year ended 30 June 2022 has increased by GBP60k from GBP927k
to GBP987k. As a result of the restatement the Earnings per share
for the prior year are restated to GBP2.09 previously GBP1.96. Diluted
earnings per share for the prior year are also restated to GBP2.07,
previously GBP1.94.
Restatement 2
During the current financial year it was identified that a corporate
tax receivable balance had incorrectly been recorded as a sales
tax payable in the prior year. There was no adjustment required
to the 1 July 2022 statement of financial position and no change
to the tax charge.
Restatement 3
During the current financial year it was identified that no adjustment
had previously been made for the tax effect of unrealised intra-group
profits. The correction of this has no material profit effect in
the current or prior year and has been moved to retained earnings
as detailed below.
Consolidated 2022
statement of Previously Restatement Restatement Restatement 2022
financial reported 1 2 3 Restated
position 2022 GBP000 GBP000 GBP000 GBP000 GBP000
Right of use assets 5,209 359 - - 5,568
Current liabilities
- lease
liabilities (814) (128) - - (942)
Non-current -
lease liabilities (4,997) 143 - - (4,854)
Deferred tax asset 1,493 - - 333 1,826
Income tax
receivable 713 - 249 - 962
Trade and other
payables (3,222) - (249) - (3,471)
Retained earnings 12,371 374 - 333 13,078
Consolidated Restatement Restatement Restatement 2021
statement of 2021 Previously 1 2 3 Restated
financial reported
position 2021 GBP000 GBP000 GBP000 GBP000 GBP000
Right of use
assets 5,423 660 - - 6,083
Current
liabilities
- lease
liabilities (629) (250) - - (879)
Non-current -
lease
liabilities (5,276) (96) - - (5,372)
Deferred tax
asset 2,489 - - 333 2,822
Retained
earnings 14,687 374 - 333 15,334
9. Non-GAAP measures
Income statement reconciliation
The group presents adjusted profit measures (operating
profit/EBIT, Profit after tax, Profit before tax and EBITDA) by
making adjustments for costs and profits, which management believes
to be significant by virtue of their size, nature or incidence.
Such items may include, but are not limited to, share based
payments expense, impairments, fair value movements on investments
and restructuring. In addition, the group presents EBITDA and
adjusted EBITDA (adjusted in the same manner) as management
believes that this is an important metric for the shareholders. The
group uses adjusted measures to evaluate performance and as a
method to provide shareholders with clear and consistent reporting.
See below reconciliation of operating profit (EBIT), profit before
tax, net profit and EBITDA to the respective adjusted measures.
2023 2023
Statutory Adjusted
Adjusted profit measures Notes GBP000 2 GBP000
Operating profit (EBIT) 5,281 1,061 6,342
Net finance costs 4 (169) - (169)
Profit before tax 5,112 1,061 6,173
Income tax expense 8 (651) (483) (1,134)
Profit attributable to equity
shareholders 4,461 578 5,039
========== ====== =========
Effective tax rate 13% 46% 18%
---------- ------ ---------
Profit before tax margin 14% 17%
Profit for the year 4,461 578 5,039
Income tax expense 651 486 1,134
Net finance cost 169 - 169
Depreciation, amortisation
and impairments 2,618 - 2,618
---------- ------ ---------
EBITDA 7,899 1,061 8,960
---------- ------ ---------
Revenue for the year 36,009 - 36,009
EBITDA margin 22% - 25%
2023
Statutory
ROCE GBP000
Total assets - restated 41,367
Current liabilities (5,763)
Capital employed 35,604
EBIT 5,281
ROCE 15%
Specific adjusting
items
2022 2022
Statutory Adjusted
Adjusted profit measures Notes GBP000 1 2 GBP000
Operating profit (EBIT) 1,749 2,439 596 4,784
Net finance costs 4 (194) - - (194)
Profit before tax 1,555 2,439 596 4,590
Income tax expense - restated 8 (568) (463) 63 (968)
---------- -------- ----- ---------
Profit attributable to equity
shareholders 987 1,976 659 3,622
========== ======== ===== =========
Effective tax rate 37% 19% 11% 21%
---------- -------- ----- ---------
Profit before tax margin 5% 15%
Profit for the year 987 1,976 659 3,622
Income tax expense 568 463 (63) 968
Net finance cost 194 - - 194
Depreciation, amortisation
and impairments 5,211 (2,439) - 2,772
EBITDA 6,960 - 596 7,556
---------- -------- ----- ---------
Revenue for the year 31,123 - - 31,123
EBITDA margin 22% - - 24%
Restated
2022
Statutory
ROCE GBP000
Total assets - restated 39,681
Current liabilities (4,413)
Capital employed 35,268
EBIT 1,689
ROCE 5%
Specific adjusting items are as follows:
1. Impairment of intangibles in relation to prior year product
rationalisation
2. Share based payment charges under IFRS 2
10. Annual Report
Printed copies of the annual report and financial statements,
along with the notice of AGM, will be sent to shareholders prior to
the Company's Annual General Meeting taking place on 19 December
2023 in London. The accounts will be available on line shortly at
https://tristelgroup.com/
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END
FR GPGUUUUPWPPA
(END) Dow Jones Newswires
October 16, 2023 02:00 ET (06:00 GMT)
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